e& said that it had entered into a legally binding deal to buy the majority of Careem's Super App spinoff from Uber Technologies, Inc. ("Uber") and its subsidiary, Careem. Uber will continue to be the sole owner of Careem's ride-hailing business, which will continue to offer all other Careem services to users on the current app.
Careem's Super App will have e&, Uber, and all three of Careem's co-founders as majority shareholders when e& invests $400 million in it. More than a dozen services are available on the Careem Super App, including food and grocery delivery, micromobility, a digital wallet, a variety of financial services, and extra third-party services like housecleaning, car rentals, and laundry. Customers of Careem can use its services in ten nations in the Middle East, North Africa, and South Asia.
Careem hopes to realise its ambitious goal of building the first "everything app" that serves clients all over the Middle East faster with the help of this additional financing. In addition to adding more partner services to the app, this will involve growing its primary food, grocery, and financial offerings as well as the Careem Plus subscription programme throughout the region. With e&, Careem anticipates creating substantial synergies and profiting from esizable &'s customer base and wealth of expertise growing tech-enabled businesses throughout a sizable portion of their respective geographic footprints.
This investment supports estrategic &'s goal of driving its transformation into a worldwide technology and investments business and building up consumer digital products. It gives e& access to numerous digital verticals, fresh, cutting-edge digital services, top personnel, and new geographical regions. The expansion of e& life's fintech vertical, e& money, which will play a significant part in the super app concept by providing e& money's robust financial service offerings, will be one of the consumer digital services that e& will use the Careem Super App to promote.
e& has evolved recently into a multinational technology and investment firm. The organisation is incorporating cutting-edge technology into its growing business verticals. Across 16 countries in the Middle East, Asia, and Africa, e& boasts 163 million customers.
Hatem Dowidar, Group CEO, e& commented, “Super Apps have catalysed the economic, social and cultural growth of emerging markets today. The popularity of super apps has come from the need to provide a unique and seamless customer experience. The mobile first population have given rise to an ecosystem that has encouraged the use and also expanded the scope for super apps with user expectations turned towards performing their daily activities on digital platforms.
“The Careem Super App, is a digital native that has built a rapidly growing payments, food and grocery delivery network, and a platform for other digital businesses to scale from. The shared vision between e& and Careem is exciting, we believe that together we’ll be able to enhance our impact across different markets in the region while pushing the boundaries of customer experience.”
Dara Khosrowshahi, CEO, Uber said, “Over the last decade, Careem helped revolutionize mobility across the greater Middle East while building an incredible brand. I am thrilled to partner with Careem, and welcome e&, as we grow the Careem super app to deliver more services to millions of people in this fast-moving part of the world. All of us at Uber are excited about the impact the Careem platform will have on this region over the next decade and beyond.”
Khalifa Al Shamsi CEO, e& life said: “We are thrilled to welcome Careem into the e& family with this exciting and ground-breaking deal. There are several growth opportunities between Careem and e& life as the “consumer digital” arm of e&. Our current strengths, primarily in fintech and multimedia, coupled with Careem’s services and regional footprint, will accelerate our joint vision towards a regional super app. With this partnership between e&, Careem and Uber we will set new standards of product innovation and customer experience throughout the region.”
Careem CEO and co-founder Mudassir Sheikha said, “The opportunity to use technology to leapfrog the lives of people in the region is enormous. Uber has been an incredible partner over the last three years as we expanded our mission to simplify the lives of people with everyday services beyond ride-hailing. We are excited to bring e& into the family. Their passion for uplifting the region and the synergies across their portfolio are extremely valuable. With two strong partners in e& and Uber, I have no doubt that we will build the preeminent technology platform of the region."
Careem has developed into a multiservice app offering users more than a dozen options after Uber purchased it in 2020. Quick, a grocery delivery service, expanded 46 times in the UAE in 2022, while food orders increased by 86 percent. With a digital wallet and payment services including bill payments, overseas remittances, domestic peer-to-peer payments, and one-click checkout, Careem Pay launched as a true fintech in the UAE throughout the course of the year. Careem Bike expanded by 61% and doubled the size of its network of pedal-assist bikes. Careem introduced its well-liked subscription service Careem Plus, achieved 4.9x growth in its initial partner business (house cleaning), and added new third-party partners who provide rental cars, spa treatments, and laundry services.
The transaction's completion is still pending governmental clearances, normal closing requirements, and administrative processes.
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